Excel Capital Partners Reaches First Close

Excel Partners has announced a first closing in excess of Pta 8 billion (ecu 47.8 million) for Excel Capital Partners III LP (ECP3). The fund, which will close on or before 31 December, will be capped at Pta 18 billion (ecu 107 million). BT Alex Brown (story, page 10) is placing the fund, and investors at the first close include Bankers Trust, BancBoston and AIG. Excel Partners expects to conclude a “substantial” non-discretionary co-investment agreement with one of the major investors in the fund in the near future, according to Tara Wright, who is responsible for investor relations. Ultimately, BT and Excel expect to raise more than half the fund from US investors.

Excel launched the fund last year, following its own buyout from the Rothschild Group, to succeed Excel Capital Partners I & II, which had committed capital of Pta 3 billion and invested in nine companies, six of which have been realised.

The gross weighted IRR to date on these funds exceeds 44%, and the funds have returned a net IRR of 29% to investors.

ECP3 will focus on investment in buyout and development opportunities in high-growth companies in Spain and Portugal. Normally taking minority positions with effective control, it will particularly target firms that are expanding internationally. Excel believes that the fund will find attractive investment opportunities accompanying and assisting medium-sized growth companies into Latin America, following the trend set by the recent expansion of large Iberian companies into the region.

Excel Partners hopes soon to announce the launch, together with a local financial institutions, of a parallel vehicle for Iberian-resident investors to invest alongside ECP3.